Trump economic adviser says White House probing Fed renovation costs, authority to fire Powell
Share this @internewscast.com

President Trump holds the power to dismiss Federal Reserve Chair Jerome Powell if there is justified cause based on supporting evidence, stated White House economic adviser Kevin Hassett on Sunday. Hassett also mentioned that the Fed needs to explain the renovation cost overruns at its Washington headquarters.

During an interview on ABC’s “This Week,” Hassett, who serves as the director of the National Economic Council, remarked that Trump’s potential decision to remove Powell over a reported $700 million cost overrun hinges significantly on the responses to the inquiries that Russ Vought has directed towards the Fed.

Last week, Vought, the White House budget director, criticized Powell for what he termed an “extravagant refurbishment” of the Fed facilities. He demanded answers regarding the $2.5 billion project, likening it to France’s Palace of Versailles, noting elements like rooftop gardens, water features, and luxurious marble in a post on X.

Hassett’s comments confirm that the Trump administration is actively exploring the renovation costs and Powell’s testimony about the project as a possible avenue to try to fire the Fed chief well before his term as chair ends next May.

Trump has repeatedly called for Powell’s resignation for failing to lower interest rates since Trump returned to office in January.

Vice President JD Vance piled on more criticism in a post on X on Sunday: “Fed has been totally asleep at the wheel. As President Trump says, they’re TOO LATE–both in fighting inflation during Biden and in lower rates now.”

The Fed on Friday appeared to rebut some of Vought’s claims in a “Frequently Asked Questions” posting about the project, describing it as the first complete renovation of the buildings since their construction in the 1930s, including removing lead contamination and more asbestos than initially anticipated.

It shows pictures of leaky pipes and roofs and notes that costs have risen due to increased material, equipment and labor costs. It denied assertions that there were VIP dining rooms or elevators being installed. The project will have a “green roof” using plants to help manage water runoff and aid with heating and cooling, as many other federal buildings have used for decades but no terrace access.

“There are no new water features, there’s no beehives, and there’s no roof terrace gardens,” Powell told U.S. senators in testimony in June, denying excessive spending on the project.

Powell said the almost 90-year-old headquarters “was not really safe, and it was not waterproof” while acknowledging cost overruns.

The Fed has said that the project, which includes upgrades to an adjacent building, will consolidate staff into a single campus and reduce off-site lease costs. As of February, a Fed Inspector General report estimated that costs had risen to $2.4 billion from an estimate of $1.9 billion two years earlier, a $500 million increase.

Asked if Trump had the authority to fire Powell, Hassett, whose name has emerged as a potential candidate to take over the Fed chair job, said: “That’s a thing that’s being looked into, but certainly if there’s cause, he does.”

Rep. French Hill (R-Ark.), who chairs the powerful House Financial Services Committee, said Trump did not have the authority to fire the Fed chair, but Congress would continue to provide strong oversight of the central bank.

“Just because Congress created the Fed and that we believe that it should be independent in the setting of monetary policy, it doesn’t mean that it’s immune from criticism,” Hill told CBS’ Face the Nation. “Every president since World War II has had choice words for the Fed chair when they’ve not been in sync with the direction of the president.”

Separately on Sunday, Kevin Warsh, a former Fed Board of Governors member who is considered a potential candidate to replace Powell, said the U.S. central bank needs “regime change” that goes beyond the chair position.

“The Fed has lost its way. It’s lost its way in supervision, it’s lost its way in monetary policy,” Warsh said in a Sunday interview on Fox’s “Sunday Morning Futures” program.

“We need regime change at the Fed, and that’s not just about the chairman. It’s about a whole range of people, it’s about changing their mindset and their models, and frankly it’s about breaking some heads, because the way they’ve been doing business is not working.”

Share this @internewscast.com
You May Also Like
1995 heat wave Chicago: How deadly extreme heat event exposed deep flaws in city's emergency systems

The Deadly 1995 Chicago Heat Wave: Revealing Flaws in the City’s Emergency Response System

CHICAGO (WLS) — Thirty miles outside of Chicago, you will find a…
Russian Officials Smugly Dismiss Trump's 'Theatrical Ultimatum' on Ukraine Ceasefire Deal

Russian Officials Brush Off Trump’s Ultimatum on Ukraine Ceasefire as Theatrics

“Russia didn’t care.” These were the remarks of Dmitry Medvedev, the Deputy…
Naibel Benavides and Dillon Angulo at a restaurant.

Tesla Autopilot Crash Leads to Trial After Car Allegedly Runs Red Light, Resulting in Tragic Death of Stargazing Woman

A LANDMARK trial against Tesla has begun after one of the company’s…
Scammers hijack Google reviews for small Florida businesses

Fraudsters Take Over Google Reviews for Small Businesses in Florida

The star rating can help attract new customers, but some small business…
Florida man who killed 2 people outside a bar is scheduled to be executed

Execution Date Set for Florida Man Convicted of Double Murder Outside Bar

A man who shot and killed a couple outside a Florida bar…
Chinese illegals accused of plotting to scam elderly Americans out of life savings

Chinese Nationals Allegedly Planned to Defraud Elderly Americans of Their Savings

U.S. Immigration and Customs Enforcement detained two Chinese nationals illegally residing in…
Przemyslaw Jeziorski: UC Berkeley professor shot and killed in Greece, family says

Family Reports: UC Berkeley Professor Przemyslaw Jeziorski Fatally Shot in Greece

BERKELEY, Calif. — A UC Berkeley professor was shot and killed while…
Emmy Nominations 2025 announced: List of nominees

2025 Emmy Nominees Revealed: See Who Made the List

This year’s nominees stand to gain from the lack of competition from…
Woman with red hair on a balcony, enjoying a coffee break during her time teaching English in Vietnam.

UK Traveler Faces Court for Alleged E-Scooter Incident Resulting in Father’s Death After Six-Hour Pub Outing, Faces 20-Year Sentence

A British backpacker has been brought to court over allegations of fatally…

Tragic Incident: 19-Year-Old Factory Worker Loses Life in Meat Grinder Accident Despite Colleagues’ Efforts

A TEENAGER working at a burrito factory has been killed by a…

Exploring the Science of Shark Bites: National Geographic’s ‘Investigation Shark Attack’ at ‘Sharkfest’

“Sharkfest” dives deep with a new series and some jaw-dropping science. National…
(FILES) This file handout photo provided by Saudi Arabia's NEOM on July 26, 2022 shows the design plan for the 500-metre tall parallel structures, known collectively as The Line, in the heart of the Red Sea megacity NEOM. - Saudi Arabia was chosen to host the 2029 Asian Winter Games at a $500 billion futuristic megacity in the desert that planners say will feature a year-round winter sports complex. The Saudi bid was "unanimously approved", the statement said, noting that the megacity known as NEOM will be the first West Asian city to host the event. (Photo by NEOM / AFP) / RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "AFP PHOTO / NEOM" - NO MARKETING - NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS (Photo by -/NEOM/AFP via Getty Images)

The Future of Saudi Arabia’s $1 Trillion Megacity “The Line” Uncertain as Leaders Assess Feasibility Amid Controversy

The ambitious $1 trillion megacity, The Line, faces uncertainty as Saudi leaders…